Caramelized Onions and Mushrooms at home is easy to do. All you need is onions, mushrooms, a few other ingredients and some time. They are a delicious way to liven up a simple piece of meat like steak or chicken.

Why You Should Make These Caramelized Mushrooms and Onions
These Caramelized Mushrooms and Onions are a delicious side dish that liven up a simple piece of meat like steak or chicken. Or as a topping for pate. And it’s much easier than you would expect. You just need a little bit of time.
Do mushrooms take longer than onions to cook?
For this recipe, you don’t need to cook mushrooms or onions separately as they cook at the same rate.
Do you use oil or butter to caramelize onions?
Traditionally, you use butter or a combination of oil and butter. For this recipe, I chose to use ghee as it has a higher smoke point. However, you could easily omit the butter and double the olive oil.
What is the difference between caramelized onions and sautéed onions?
Sauteed onions are just cooked in a pan until just cooked or translucent. However, caramelized onions are slow cooked much longer with the addition of a sweetener and vinegar.
What to add to onions to caramelize?
To truly caramelize onions, you’ll need to add a sweetener to help create that caramelized flavor. For this recipe, honey is used.
Are sautéed onions and mushrooms healthy?
Yes! Onions and mushrooms are nutrient-packed vegetables. Mushrooms are especially nutrient dense with a Nutrivore score of 2000+ (depending upon the variety).
I use onions and mushrooms in tons of recipes. Here are my favorite mushroom recipes.
- Sweet Potato Glass Noodles Stir Fry (Japchae)
- Prosciutto Wrapped Stuffed Pork with Brussel Sprouts
- Grilled Meat Skewer with Basil Marinade
Can you caramelize onions and mushrooms together?
Yes. Mushrooms and onions cook at the same rate when caramelizing them. No need to cook them separately.
Should you cover onions when caramelizing?
No. You don’t want to cover them because that would trap the liquid. You want the liquid to burn off and reduce.
Why do my caramelized onions have so much liquid?
If your onions have a lot of liquid, then there could be a few reasons.
- You used too much liquid or washed your mushrooms in water.
- You covered the pan.
- Or you just haven’t cooked it long enough or at a high enough heat.
How do you know when onions are done caramelizing?
When the onions and mushrooms are finished cooking, they will be beautifully golden, and the liquid will be completely reduced. If you follow all the instructions in this recipe, you shouldn’t have any questions about doneness.
How do you reheat caramelized onions?
This dish can easily be reheated in the microwave or in a small pan on the stove top with a bit of water.
Cleaning the Mushrooms
To clean the mushrooms, do not immerse them in water. Mushrooms are like sponges. They absorb the water and that will water down the flavor of the dish. All you need to do is wipe the dirt off the mushrooms with a paper towel.
What’s in caramelized onions and mushrooms?
- Onions: Make sure to slice along the grain of the onion to make long slices or sticks.
- Mushrooms: Use white, baby bella or cremini mushrooms.
- Extra Virgin Olive Oil
- Ghee: Please note that ghee is an AIP Reintroduction. To make it AIP friendly, just use additional extra virgin olive oil.
- Salt: Make sure to use sea salt.
- Honey
- Balsamic Vinegar
How to make caramelized onions and mushrooms.
1. Add the olive oil to a large sauté pan over medium high heat.
2. Add the onions and mushrooms then stir. Then add the salt and honey.
3. Spread the onions out over the pan and let cook for about 20 minutes while stirring occasionally. You want to give them time to brown and caramelize without burning and sticking to the pan. If you find that they are drying out, then you can add a little water.
4. Once the onions begin to reduce, lower the heat to medium low. You may need to stir the onions more frequently to keep them from burning. Cook for another 15-20 minutes until all the onions are completely caramelized and golden brown.
5. Add the vinegar to the pan. Stir to coat the onions then let cook for a few more minutes before serving.
Tips for making the PERFECT Caramelized Onions and Mushrooms.
- Please note that ghee is an AIP Reintroduction. To make it AIP friendly, just use additional extra virgin olive oil.
- White, baby bella or cremini mushrooms are all acceptable for this recipe.
- To slice the onion along the grain, cut the ends off, slice in half then slice along the grain. You should see the striations and should cut along them to create sticks of onion.
- Ghee is easy to make at home. Here’s my recipe for Instant Pot Ghee.
What goes with caramelized onion and mushrooms?
- AIP Beef Liver Pate
- AIP Meatloaf (use it as a topping instead of ketchup)
- Pork Chops
- Steaks
- Burger (makes a great topping)
- Chicken
If you like this recipe, then you’ll love these other mushroom recipes.
- Wine Braised Mushrooms
- Chicken Marsala
- Sheet Pan Steak Dinner
- Grilled Meat Skewer with Basil Marinade
Love seeing my delicious recipes? You can also FOLLOW ME on FACEBOOK, INSTAGRAM and PINTEREST to see more delicious food and what I’m up to.
Caramelized Onions and Mushrooms
Equipment
- Cast Iron Skillet or heavy bottomed skillet
Ingredients
- 2 medium Onions sliced along the grain of the onion
- 1 pint Mushrooms (white, baby bella or cremini) sliced
- 2 tablespoons Extra Virgin Olive Oil
- 2 tablespoons Ghee AIP Reintroduction, to make it AIP friendly, just use additional extra virgin olive oil
- 1 teaspoon Salt
- 1 tablespoon Honey
- 2 tablespoons Balsamic Vinegar
Instructions
- Add the olive oil to a large sauté pan over medium high heat.
- Add the onions and mushrooms then stir to coat the onions. Then add the salt and honey.
- Spread the onions out over the pan and let cook for about 15 minutes while stirring occasionally. You want to give them time to brown and caramelize without burning and sticking to the pan. If you find that they are drying out, then you can add a little water.
- Once the onions begin to reduce, lower the heat to medium low. You may need to stir the onions more frequently to keep them from burning. Cook for another 15-20 minutes until all the onions are completely caramelized and golden brown.
- Add the vinegar to the pan. Stir to coat the onions then let cook for a few more minutes before serving.
Video
Notes
- Please note that ghee is an AIP Reintroduction. To make it AIP friendly, just use additional extra virgin olive oil.
- White, baby bella or cremini mushrooms are all acceptable for this recipe.
- To slice the onion along the grain, cut the ends off, slice in half then slice along the grain. You should see the striations and should cut along them to create sticks of onion.
- Ghee is easy to make at home. Here’s my recipe for Instant Pot Ghee.
Nutrition
Helpful Info for All Recipes
- I always use extra virgin olive oil in all of my recipes unless stated otherwise.
- I always use Himalayan sea salt or Celtic sea salt, unless otherwise noted.
- The majority of my recipes are strict AIP or include notations for reintroductions. However while I make every effort to label non-AIP ingredients and recipes sometimes they slip past me. If you have questions, please ask in advance.
Did you make this recipe? I love hearing your thoughts on my recipes so please rate and comment below.
Really good, thanks! I’m serving it over meatloaf tonight and looking forward to all the ways I’ll be able to perk up other foods!
oh Yeah! That sounds like a great idea. Thanks for commenting.
This is a wonderful way to caramelize onions and mushrooms! Take your time and don't rush the process to get the best results. I used duck fat instead of ghee since that's what I had on hand. It's so simple and good for a compliment to steak or a burger!
Thanks so much for rating and reviewing the recipe. And I'm so glad you jumped on this recipe. Duck fat sounds like an amazing addition. I will have to try that myself sometimes.